Many businesses only generate income when they are open and trading. This means that every day is a new challenge to maximise revenue whilst without over committing to costs. One way of overcoming this is by creating a subscription service.
Subscription services are a form of recurring income. Recurring Income can be defined as income that is expected to continue in the future. Unlike one-off sales, this revenue stream is more predictable, stable and can be relied on to come in going forward with a relative degree of certainty.
So what are possible sources of recurring income? These are income streams as royalties, rental income, interest and dividend income. But it’s another source that we consider in this article. That is income that businesses earn via memberships or subscription services. And it’s a growing trend.
Traditionally this form of income is associated with sectors such as banking, software and telecoms. But in recent times there have been some new trends. Take for example the business of subscription boxes. Whether it is food, beauty or even dog subscription boxes, they have been extremely popular recently and it seems like there is no sign of this market slowing down. Indeed this sector has grown over 100% in the past five years, according to McKinsey and Company.
So why would you as a business owner bother to developing a subscription service.
- You don’t start every month at zero sales
This point has already been made. By having a subscription service, you don’t start the month with zero income. The more subscribers you have, the more income that you start the month with.
- It will help to smooth out seasonal income fluctuations
Most businesses have some sort of seasonal fluctuations. It is unlikely that your subscription business will suffer such fluctuations and therefore give you a more even flow of income.
- You can get to know your customers better
By running a subscription service, you will build a stronger relationship with your customers and get to know them better. You can collect feedback, test new products, ask questions… you get the idea!
- You will have a group of sticky customer
Your subscribers, because they hear from you so often, will become very loyal to you. They are more likely to recommend new customers and give you testimonials and reviews.
- Free up your time as a percentage of your income is automatic
By having a chunk of your income coming automatically you do not have to spend so long on sales. You can spend it on other areas of your business or even take time off if you choose!
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Setting goals is a great way to fuelling your ambition. By creating a plan and holding yourself accountable, you not only make progress but also fire your inspiration. Without setting goals you’ll find that you will lack focus and direction. Sure, you’ll be busy with the day-to-day but you won’t necessarily be making progress
This free report will help you get super clear on your goals
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Why Having A Plan Is Essential
- Setting goals is a great way to fuelling your ambition. By creating a plan and holding yourself accountable, you not only make progress but also fire your inspiration
- So you’ll find you and your business making achievements you never thought possible
- Without setting goals you’ll find that you will lack focus and direction. Sure, you’ll be busy with the day-to-day but you won’t necessarily be making progress
- This free report will help you get super clear on your goals